The Ministry of Finance continues consultations with business on ATAD implementation

These webinars are taking place as part of the work on a draft law adapting Ukrainian tax legislation to the requirements of EU Directive 2016/1164 (ATAD). The discussion brought together representatives of business associations, as well as international experts from EU4PFM, the OECD, and the IMF.

The central topic of the meeting was Article 4 of the ATAD Directive — the interest limitation rule restricting the deduction of borrowing costs. Participants examined the scope of the article, key concepts, the procedure for calculating exceeding borrowing costs, as well as the optional provisions that the Directive leaves at the discretion of member states.

Article 4 is one of the most flexible provisions in the Directive: it contains the largest number of optional clauses, giving legislators room for adaptation. At the same time, participants stressed the need to preserve the integrity and effectiveness of the entire ATAD toolkit and to ensure that the final text complies with the Directive’s requirements.

For every comment raised, representatives of the Ministry of Finance, the Reform Support Team under the Ministry of Finance and international experts provided clarifications on the Directive’s requirements and proposed possible solutions.

The draft law on ATAD implementation was developed by the Ministry of Finance with the support of international experts, as part of Ukraine’s commitments on its path to EU membership. The consultations are made possible thanks to the expert and technical support of the EU4PFM Programme.